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The Tax PublishersITA No. 787/Del/2016
2019 TaxPub(DT) 4843 (Del-Trib)INCOME TAX ACT, 1961
Section 69C
In case there was no dispute as regards corresponding sales, entire purchases as claimed by assessee could not be held as bogus even though some accomodation entries were obtain from alleged suppliers, accordingly, addition of 5% profit element embedded in impugned purchases would meet ends of justice.
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Income from undisclosed sources - Addition under section 69C - Bogus purchases - No dispute as regards corresponding sales
Assessee was found to be beneficiary of certain entry operators, accordingly, AO treated entire purchases claimed by the assessee as bogus and made addition under section 69C, however, without disputing corresponding sales. Held: Undisputedly, delivery of goods was duly recorded in stock register and the fact of supply was also accepted in sales tax order for the relevant assessment year. These facts clearly suggested that assessee had made purchases from grey market through cash payment and some entries were obtained from certain suppliers who had not sold such goods. In such circumsternces entire purchases could not be held as bogus and addition of 5% profit element embedded in impugned purchases would meet ends of justice.
Followed:Sh. Sanjay H. Shah, Mumbai v. ITO in ITA No. 5063 to 5065/Mum/2017 for assessment year 2009-10 to 2011-12Relied on:CIT v. Simit P. Sheth (2013) 356 ITR 451 (Guj) : 2013 TaxPub(DT) 2115 (Guj-HC) CIT v. Sathyanarayan P. Rathi (2013) 351 ITR 150 (Guj) : 2013 TaxPub(DT) 703 (Guj-HC)
REFERRED :
FAVOUR : Partly in assessee favour
A.Y. :
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